All posts in News

Half Yearly Report and Accounts

The directors present their report together with the condensed financial report of the consolidated entity consisting of Ava Risk Group Limited (the Company) and its controlled entities (the Group) for the half-year ended 31 December 2020 and independent review report thereon. This financial report has been prepared in accordance with AASB 134 Interim Financial Reporting.

Review Ava Group’s Half Yearly Report and Accounts here>>

Directors’ Names

The names of the directors in office at any time during or since the end of the half-year are:

NamePeriod of Directorship
D Cronin (Chairman)Appointed 10 April 2018
M Stevens (Non-Executive Director)Appointed 11 March 2015
M McGeever (Non-Executive Director)Appointed 8 August 2018
R Broomfield (Executive Director)Appointed 27 February 2008
S Basham (Executive Director)Resigned 9 July 2020

The directors have been in office since the start of the financial period to the date of this report unless otherwise stated.

Review of operations

Highlights

  • Revenue from ordinary activities of $35.159 million for the 6 months to 31 December 2020 (HY2021):
    • 72% increase on HY2020 ($14.713 million) with revenues up by $9.243 million in the Services Division. Perimeter Security and Access Control contributed an additional $5.470m of sales revenue with strong revenues from the Indian Ministry of Defence Contract (MoD) and the Australian Department of Defence, despite Covid-19 delays to underlying sales;
    • Licence fees from the Indian MOD project, have contributed $7.726 million of revenue and gross margin (HY2020: $1.343 million);
    • 31 December 2020 sales orders backlog of $3.4 million (HY2020: $16.7 million), inclusive of the Indian MOD project.

Gross margin of 57% (HY2020: 49%) as a result of higher revenue margin in the International Valuable Logistics (Services) division and improved margins in the Technology division driven by favourable margin on the Indian MoD licence fee income.

Operating expenses excluding depreciation, amortisation and interest are $8.637 million (HY2020 $7.811 million).

  • Net profit from ordinary activities up to $11.028 million (HY2020: $0.942 million) driven by:
    • Increase of $4.020 million profit in Perimeter Security underpinned by the Indian MoD contract;
    • Strong demand for International Valuable Logistics services in the first six months contributing to an increase of $3.320 million profit in the Services Division; and
    • Access Control Solutions reporting a profit of $2.135 million as a result of 109% growth in revenue (HY2020: $0.611 million loss);
  • The Board declared a Special dividend of $0.01 per share, paid on 23 October 2020.
  • As at 31 December 2020, the balance sheet has net assets of $34.075 million (FY2020 $25.415 million) with no external debts or borrowings.

Events after the Balance sheet date

Dividends

On 29 January 2021, the Group announced a Special dividend of $0.02 per share on ordinary shares. The dividend has a record date of 10 February 2021 and will be paid on 10 March 2021.

Other than the changes noted above there has been no matter or circumstance, which has arisen since 31 December 2020 that has significantly affected or may significantly affect:

  1. the operations subsequent to 31 December 2020, of the consolidated entity, or
  • the results of those operations, or
  • the state of affairs, subsequent to 31 December 2020, of the consolidated entity.

Rounding of amounts

In accordance with ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191, the amounts in the directors’ report and in the financial report have been rounded to the nearest one thousand dollars, or in certain cases, to the nearest dollar (where indicated).

Auditor’s independence declaration

A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 in relation to the review for the half-year is provided with this report.

This report is made in accordance with a resolution of directors.

David Cronin
Chairman
26 February 2021

Multi-base Air Force Contract Award

Ava Risk Group Limited (ASX: AVA) (“Ava Group” or “Company”) is pleased to announce that its world leading Aura Ai sensing product has successfully completed comprehensive Site Acceptance Testing at a major airbase located within a large Asian country and been selected to be deployed for a further 15-site program to upgrade security at certain major air force bases.

  • Multi-site security upgrade.
  • Initial purchase orders received exceeding US$0.55m (A$0.7m) for the next 4 sites.
  • Deployment at these 4 sites is expected during Q3 FY2021 with follow on orders anticipated for the remaining 11 sites during Q4 FY2021 and FY2022.

Ava Group CEO, Rob Broomfield said “Following a comprehensive evaluation and testing program and a competitive tender and trial process, our strong track record of providing world class security and assurance technologies has been reinforced by this large contract award with a highly respected defence end user”.

For further information, please contact:

Rob Broomfield, Group CEOLeigh Davis, Group CFO & Company Secretary
rob.broomfield@theavagroup.comleigh.davis@theavagroup.com
+61408243582+61 3 9590 3103
   

Please refer to Note 1 below.

Approved for release for and on behalf of the Board of Directors by:
Leigh Davis
Company Secretary

About Ava Group
The Ava Group, comprising world leading technology divisions Future Fibre Technologies (FFT) and BQT Solutions (BQT), and international secure logistics services division Ava Global, is a market leader in the provision of risk management services and technologies, trusted by some of the most security conscious commercial, industrial, military and government clients in the world.

The Group features a range of complementary solutions including intrusion detection for perimeters, pipelines and data networks, biometric and card access control as well as the secure international logistics and storage of high value assets. Through decades of innovation, the Ava Group continues to build upon a comprehensive portfolio of premium services and technologies for the most complex and demanding markets.

Our business truly serves a global market, with our knowledgeable team spread across six continents, providing market and industry expertise directly to customers. With thousands of sites protected, the Ava Group is proven to deliver first class services and technologies that surpass the expectations of our partners and end users.

Note 1
Forward Looking Statements
Information in this release is for general information purposes only. Certain statements in this document regarding the Company’s financial position, business strategy and objectives, contain forward-looking statements (rather than being based on historical or current facts) and as such, are not able to be verified. 

All forward-looking statements are based on the current views of the Company’s management as well as reasonable assumptions made by, and information currently available to the Company’s management. Forward-looking statements are inherently uncertain and must be read accordingly. There can be no assurance that some or all of the underlying assumptions will prove to be valid. If assumptions are invalid this is likely to have an impact on the accuracy of the statement itself.

All data presented in this document reflects the current views of the Company with respect to future events.  Forward-looking statements are subject to a variety of risks, uncertainties and assumptions relating to the operations, results of operations, growth strategy and liquidity of the Company. Forward looking statements are also subject to external matters outside the control of the Company.

To the maximum extent permitted by law, the Company, its officers, employees and agents do not assume any obligation to release any updates or revisions to the information (including any forward looking statements) in this presentation to reflect any change to expectations or assumptions; and disclaim all responsibility and liability for any loss arising from reliance on this presentation or its content.

Ava Group Special Dividend

Ava Risk Group Limited (ASX: AVA) (“Ava Group” or “Company”) is pleased to announce a Special Dividend. Shareholders at the Record Date of 10 February 2021 will receive an unfranked dividend of $0.02 per share, paid on 11 March 2021.

Ava Group CEO, Rob Broomfield said “I am very pleased that our record H1 FY2021 results have delivered material profits and positive cashflow which has enabled the board to approve a dividend for our shareholders, the second Special Dividend that we have announced in FY2021. As our profits, cashflow, and cash balances increase, the board is committed to rewarding its shareholders.”

For further information, please contact:

Rob Broomfield, Group CEO
rob.broomfield@theavagroup.com
+61408243582

Leigh Davis, Group CFO & Company Secretary
leigh.davis@theavagroup.com
+61 3 9590 3103

Appendix 4C

  • $4.4m positive operating cash flows for the quarter
  • Increased cash holdings, consolidated net cash position of $13.4m

Ava Risk Group Limited (ASX: AVA), (“Ava Group” or “the Company”), a market leader of risk management services and technologies, today releases its cash flow report (Appendix 4C) and provides an update on the key areas of activity for the quarter ended 31 December 2020.

Review Appendix 4C

Principal Activities

Ava Group is a security technology and services company, that develops and commercialises a range of high security perimeter and access control products to protect military, government, industrial and commercial critical assets and infrastructure. These products are sold through its Future Fibre Technologies (FFT) and BQT Solutions (BQT) brands. In addition, the Company operates Ava Global, its international secure logistics division, delivering clients with reliable secure delivery for bank notes, precious metals, and other valuables.

Ava Group Achieves Record Result for H1 FY2021

On 14 January 2021, Ava Group announced its unaudited revenue and profit growth for the first half of FY2021:

Cash at bank as at 31 December 2020 of $13.4 million

Key areas of activity during the second quarter of the 2021 financial year related to:

  • The total contract value for this project is estimated at US$11.9m (A$15.6m) inclusive of income tax credits. Having already recognised $4.8m in FY2020 and $3.6m of revenue in Q1 FY2021, the Company recognised a further $4.1m of revenue in Q2 FY2021. Added to the revenues are income tax credits under the Australian Indian DTAA which are also available to the company to offset income tax payable. To the end of December 2020, 1,400 units have been shipped to the end user with another 500+ units completed awaiting shipment. We expect the balance of project deliveries to occur during H2 FY2021.  Ava Group holds a Bank Guarantee as security for ~US$2.1m (~A$2.9m),to cover payments when due.
  • The Services Division continued to provide a full range of services to all of its customers, despite the continued reduction in air freight capacity around the world due to COVID-19. These restrictions allowed Ava Global the opportunity to innovate and offer a range of bespoke cargo and charter aircraft solutions to ensure that it could continue to deliver currency, precious metals and other valuable goods for its customers.  Client activity has significantly increased during FY2021, with the addition of both new clients, a number of new contract wins and a wider breadth of services offered as a result.  This has been ably facilitated thanks to the depth of skills and experience within the Services Division and further supported by 3 additional new hires in USA, Germany and Singapore.
  • For the Technology Division, both FFT and BQT continued their COVID-19 control measures to maintain production and order fulfilment.  Although the ability to deliver site services was restricted for FFT we did receive initial orders for the multi-year Comprehensive Maintenance offering introduced that includes remote monitoring. The FFT Aura IQ conveyor health monitoring solution “Proof of Value” Trials continued despite delays from COVID-19 travel restrictions during the quarter.  FFT successfully commissioned its latest Machine Learning configuration at two major high security projects internationally and demonstrated increased levels of intrusion sensitivity along with significant reductions in nuisance alarms. During the quarter BQT successfully completed the current program order of readers for the contract from the Australian Department of Defence (DoD) under the larger Australian Government.
  • Operating cash outflows for the quarter of $11.6m was mostly comprised of product manufacturing and operating costs ($7.7m), staff costs ($3.0m), and administration and corporate costs ($0.6m).
  • During the quarter the Company made payments of approximately $201,000 to Directors and their associates. This includes all Executive Directors and Non-executive fees, salaries, cash bonuses, and consultancy and service fees paid to related or associated parties of Directors including in respect of subsidiary operations whereby directors are related parties.

Commentary on Appendix 4C Cash Flow Report

Net operating cashflows in the quarter were positive $4.4m an increase of $0.7m on the previous quarter, and a $4.6m improvement on the same time last year. This was due to an increase in cash collections from customers compared the prior quarter, up $2.4m, and up $7.4m on the same time last year. Operating costs were circa $2.2m higher than the prior quarter, and $2.9m higher than the same time last year driven by higher payments for product manufacturing and operating costs which increased $0.9m quarter on quarter and $2.2m compared to the same time last year as a result of increased sales.  The Group also continued development of the Aura Ai and Aura IQ platforms, continuing its R&D spending and intellectual property spending during the quarter, at a slightly higher level compared to the previous quarter.  

Cash receipts from customers in Q2 included $2.6m from the Indian MoD project.  The next payment from this project is expected during March, being an amount of USD$1.9m (A$2.6m), in line with the 120 days project payment terms.

At 31 December 2020 the Company had $13.4m cash at bank.

ENDS.

Approved for release by the Board of Directors.

For further information, please contact:

Rob Broomfield, CEO & Executive DirectorLeigh Davis, CFO & Company Secretary
Ava Risk Group LtdAva Risk Group Ltd
rob.broomfield@theavagroup.comleigh.davis@theavagroup.com
+61 3 9590 3100+61 3 9590 3103
  

About Ava Group
The Ava Group, comprising world leading technology divisions Future Fibre Technologies (FFT) and BQT Solutions (BQT), and international secure logistics services division Ava Global,  is a market leader in the provision of risk management services and technologies, trusted by some of the most security conscious commercial, industrial, military and government clients in the world.

The Group features a range of complementary solutions including intrusion detection for perimeters, pipelines and data networks, biometric and card access control as well as the secure international logistics and storage of high value assets. Through decades of innovation, the Ava Group continues to build upon a comprehensive portfolio of premium services and technologies for the most complex and demanding markets.

Our business truly serves a global market, with our knowledgeable team spread across six continents, providing market and industry expertise directly to customers. With thousands of sites protected, the Ava Group is proven to deliver first class services and technologies that surpass the expectations of our partners and end users.

Forward Looking Statements

Information in this release is for general information purposes only. Certain statements in this document regarding the Company’s financial position, business strategy and objectives, contain forward-looking statements (rather than being based on historical or current facts) and as such, are not able to be verified.

All forward-looking statements are based on the current views of the Company’s management as well as reasonable assumptions made by, and information currently available to the Company’s management. Forward-looking statements are inherently uncertain and must be read accordingly. There can be no assurance that some or all of the underlying assumptions will prove to be valid. If assumptions are invalid this is likely to have an impact on the accuracy of the statement itself.

All data presented in this document reflects the current views of the Company with respect to future events. Forward-looking statements are subject to a variety of risks, uncertainties and assumptions relating to the operations, results of operations, growth strategy and liquidity of the Company. Forward looking statements are also subject to external matters outside the control of the Company.

To the maximum extent permitted by law, the Company, its officers, employees and agents do not assume any obligation to release any updates or revisions to the information (including any forward looking statements) in this presentation to reflect any change to expectations or assumptions; and disclaim all responsibility and liability for any loss arising from reliance on this presentation or its content.

Ava Group Achieves Record Result for H1 FY2021 (unaudited)

Ava Risk Group Limited (ASX: AVA) (“Ava Group” or “Company”) is pleased to announce  revenue and profit growth in the first half of FY2021:

  • Sales Revenues have increased by approximately 70% compared to the sae period last year to be in excess of $35.0 million for the half year.
  • EBITDA has improved by circa 450% compared to the same period last year, to exceed $12.0 million for the half year.
  • All business units are profitable for the half-year.
  • Cash at bank as at 31 December 2020 of $13.4 million.

Services Division – H1 FY2021 Snapshot

  • H1 FY2021 Revenue approximately $18.4m (With Q2 FY2021 revenues more than $2.2m+ above Q1 FY2021)
  • Gross Margin to be maintained at around 34%, considerably above the 25% in FY2020
  • H1 FY2021 EBITDA to exceed $3.5m (versus $2.4m for the whole of FY2020)
  • New contract awarded in the wholesale banknote sector, with annual revenue in excess of $1m, commencing Jan 2021
  • New operational staff in Frankfurt and Miami, supporting recent and anticipated growth in the Americas and EMEA, in addition to the New General Manager Asia, based in Singapore, appointed in Q1 FY2021
  • Whilst there has been some normalisation of pricing due to the lifting of certain COVID-19 air freight restrictions, the underlying revenue and gross margin trend remains strong
  • Industry consolidation continues to provide additional revenue opportunities with current and prospective customers

Technology Division – H1 FY2021 Snapshot

  • 1H FY2021 Revenue approximately $16.6 million
  • 1H FY2021 EBITDA in excess of $8.5 million
  • Q2 FY2021 EBITDA was adversely impacted compared to Q1 FY2021 EBITDA by FX losses on a strengthening Australian dollar, the completion of the BQT Australian DoD project early in Q2 FY2021, and the cessation of government incentives income (combined impact of circa $3.2 million vs. Q1). We had previously estimated an FX benefit of circa $0.4 million in Q1. Our latest review of the combined Q1 and Q2 FX impact has resulted in a revised estimate of circa $0.9 million FX loss for 1H FY2021
  • Indian Ministry of Defence revenue for the large-scale data network protection program (FFT’s SecureLink product) is expected to be approximately $7.7m for H1 FY2021
  • Despite Covid-19 restrictions continuing to delay certain orders due to travel restrictions and office shutdowns, our Technology Division has continued to operate, and delivered systems to both current and new customers including deliveries for major defence programs
  • Growing commercial interest in our new conveyor health monitoring solution (Aura IQ) with multiple Proof of Value trials completed and/or underway
  • Increasing activity with our assurance sensing solutions for terrestrial and sub-sea power cables
  • First shipments of the latest version of our FOSS platform delivered during the half year – with Machine Learning software which is the completion of the first step in our roadmap of innovative solutions that will be offered to our customers on a SaaS revenue model.

Ava Group CEO, Rob Broomfield said “Our record H1 FY2021 results have demonstrated that our streamlined and highly scalable cost structure, along with our diverse customer base and revenue streams, are able to show continued growth even in times as disruptive as the current global pandemic period”.

For further information, please contact:

Rob Broomfield, Group CEOLeigh Davis, Group CFO & Company Secretary
rob.broomfield@theavagroup.comleigh.davis@theavagroup.com
+61408243582+61 3 9590 3103
  

Please refer to Note 1 below.

Approved for release for and on behalf of the Board of Directors by:
Leigh Davis
Company Secretary

About Ava Group
The Ava Group, comprising world leading technology divisions Future Fibre Technologies (FFT) and BQT Solutions (BQT), and international secure logistics services division Ava Global, is a market leader in the provision of risk management services and technologies, trusted by some of the most security conscious commercial, industrial, military and government clients in the world.

The Group features a range of complementary solutions including intrusion detection for perimeters, pipelines and data networks, biometric and card access control as well as the secure international logistics and storage of high value assets. Through decades of innovation, the Ava Group continues to build upon a comprehensive portfolio of premium services and technologies for the most complex and demanding markets.

Our business truly serves a global market, with our knowledgeable team spread across six continents, providing market and industry expertise directly to customers. With thousands of sites protected, the Ava Group is proven to deliver first class services and technologies that surpass the expectations of our partners and end users.

Note 1

Forward Looking Statements

The above preliminary results for 1H FY2021 are unaudited and are subject to adjustment.

Information in this release is for general information purposes only. Certain statements in this document regarding the Company’s financial position, business strategy and objectives, contain forward-looking statements (rather than being based on historical or current facts) and as such, are not able to be verified. 

All forward-looking statements are based on the current views of the Company’s management as well as reasonable assumptions made by, and information currently available to the Company’s management. Forward-looking statements are inherently uncertain and must be read accordingly. There can be no assurance that some or all of the underlying assumptions will prove to be valid. If assumptions are invalid this is likely to have an impact on the accuracy of the statement itself.

All data presented in this document reflects the current views of the Company with respect to future events.  Forward-looking statements are subject to a variety of risks, uncertainties and assumptions relating to the operations, results of operations, growth strategy and liquidity of the Company. Forward looking statements are also subject to external matters outside the control of the Company.

To the maximum extent permitted by law, the Company, its officers, employees and agents do not assume any obligation to release any updates or revisions to the information (including any forward looking statements) in this presentation to reflect any change to expectations or assumptions; and disclaim all responsibility and liability for any loss arising from reliance on this presentation or its content.

Indian MOD Data Network Protection Project Update

Ava Risk Group Limited (ASX: AVA) (Ava Group or Company) today provides the following market update and clarifications with respect to the large-scale supply of FFT’s SecureLink technology to protect data communications cables for the Indian Ministry of Defence (IMOD):

  • Large scale supply of FFT’s SecureLink technology to protect more than 40,000kms of data communications cables for the Indian Ministry of Defence
  • FFT licenced technology to in-country manufacturing partner SFO Technologies Private Limited (SFO)
  • Total contract value estimated at US$11.9M+
  • SFO’s Bank Guarantee to Ava for US$2.1m (A$3.0m),tocover the 120 days payment terms remains in place.
  • Contract establishes FFT technology in growing cyber security market
  • Fulfilment and licencing model providing low working capital, low risk and high margin GTM approach

FY2020 Recap:

  • US$3.2 (A$4.8) million in revenue recognised
  • US$0.1 (A$0.2) million in tax credits recognised
  • US$1.0 (A$1.5) million in cash received

Q1 FY2021 (unaudited):

  • US$2.4 (A$3.6) million in revenue recognised
  • US$0.3 (A$0.4) million in tax credits recognised
  • US$1.0 (A$1.3) million in cash received

Updated Forecast:

  • Contract balance of circa US$5.9 (A$8.2) million (revenue and tax credits)
  • Q2 FY2021 revenue expected to be A$3.3 – A$3.8 million
  • US$1.8 (A$2.6) million in cash due to be received within Q2 FY2021
  • Additional revenue from subsequent seven-year spares and maintenance contract with an estimated value of a further US$3.4M (A$4.8M)

Historical A$ amounts are based on actual USD/AUD exchange rates achieved. Forecast $A amounts are based on the current USD/AUD exchange rate at time of release. Actual final A$ amounts achieved may differ depending on exchange rates achieved at the time.

For further information, please contact:

Rob Broomfield, Group CEO & Executive DirectorLeigh Davis, CFO & Company Secretary
Ava Risk Group LtdAva Risk Group Ltd
rob.broomfield@theavagroup.comleigh.davis@theavagroup.com
+61 3 9590 3100+61 3 9590 3103
  

Please refer to Note 1 below.

Approved for release for and on behalf of the Board of Directors by:

Leigh Davis
Company Secretary

About the Ava Group 
The Ava Group, comprising world leading technology divisions Future Fibre Technologies (FFT) and BQT Solutions (BQT) is a market leader in the provision of risk management services and technologies, trusted by some of the most security conscious commercial, industrial, military and government clients in the world. 

The Group features a range of complementary solutions including intrusion detection for perimeters, pipelines and data networks, biometric and card access control as well as the secure international logistics (Ava Global) and storage of high value assets. Through decades of innovation, the Ava Group continues to build upon a comprehensive portfolio of premium services and technologies for the most complex and demanding markets. 

Our business truly serves a global market, with our knowledgeable team spread across six continents, providing market and industry expertise directly to customers. With thousands of sites protected, the Ava Group is proven to deliver first class services and technologies that surpass the expectations of our partners and end users. 

Further information on the IMOD project is available via previous market announcements (see www.asx.com.au)

Note 1:                                                                         
Forward Looking Statements

Information in this release is for general information purposes only. Certain statements in this document regarding the Company’s financial position, business strategy and objectives, contain forward-looking statements (rather than being based on historical or current facts) and as such, are not able to be verified. 

All forward-looking statements are based on the current views of the Company’s management as well as reasonable assumptions made by, and information currently available to the Company’s management. Forward-looking statements are inherently uncertain and must be read accordingly. There can be no assurance that some or all of the underlying assumptions will prove to be valid. If assumptions are invalid this is likely to have an impact on the accuracy of the statement itself.

All data presented in this document reflects the current views of the Company with respect to future events.  Forward-looking statements are subject to a variety of risks, uncertainties and assumptions relating to the operations, results of operations, growth strategy and liquidity of the Company. Forward looking statements are also subject to external matters outside the control of the Company.

To the maximum extent permitted by law, the Company, its officers, employees and agents do not assume any obligation to release any updates or revisions to the information (including any forward looking statements) in this presentation to reflect any change to expectations or assumptions; and disclaim all responsibility and liability for any loss arising from reliance on this presentation or its content.

ANNUAL GENERAL MEETING PRESENTATIONS

Review AVA AGM presentation and speeches here.

ASX RELEASE: AVA Appendix 4C

• $3.7m positive operating cash flows for the quarter
• Increased cash holdings, consolidated net cash position of $11.6m


Ava Risk Group Limited (ASX: AVA), (“Ava Group” or “the Company”), a market leader of risk management services and technologies, today releases its cash flow report (Appendix 4C) and provides an update on the key areas of activity for the quarter ended 30 September 2020.

Review the full Appendix 4C here.
 
Principal Activities
Ava Group is a security technology and services company, that develops and commercialises a range of high security perimeter and access control products to protect military, government, industrial and commercial critical assets and infrastructure. These products are sold through its Future Fibre Technologies (FFT) and BQT Solutions (BQT) brands. In addition, the Company operates Ava Global, its international secure logistics division, delivering clients with reliable secure delivery for bank notes, precious metals, and other valuables.

Key areas of activity during the first quarter for the 2021 financial year related to:

  • The total contract value for this project is estimated at US$11.9m (A$16.7m). We recognised $3.6m of revenue in Q1, and a total of $4.8m in FY2020, with a further $0.8m in income tax credits under the Australian Indian DTAA to date. To the end of September 2020, 800 units have been shipped to the end user with another 300+ units completed awaiting shipment. We expect the balance of circa $6.6m, excluding tax credits, to be recognised as revenue in FY2021.  Ava Group holds a Bank Guarantee as security for ~US$2.1m (~A$2.9m),to cover payments when due.
  • The Services Division continued to provide a full range of services to all of its customers, despite the continued reduction in air freight capacity around the world due to COVID-19. These restrictions allowed Ava Global the opportunity to innovate and offer a range of bespoke cargo and charter aircraft solutions to ensure that it could continue to deliver currency, precious metals and other valuable goods for its customers.  Client activity has significantly increased during Q1, with the addition of both new clients, and a wider breadth of services offered as a result.  This has been ably facilitated thanks to the depth of skills and experience within the Services Division.
  • For the Technology Division, both FFT and BQT continued COVID-19 control measures to enable us to continue production at our factories, ship and deliver orders, and to provide service support to keep products running smoothly.  FFT continued its marketing efforts of its Aura IQ conveyor health monitoring solution, with three “Proof of Value” Trials completed and another six underway around the world during the quarter.  During the quarter BQT supplied the majority of readers for the contract from the Australian Department of Defence (DoD) for the supply of its security products to a number of DoD sites around Australia. FFT expanded it productisation and marketing of new multi-year Comprehensive Maintenance Agreements including remote services.
  • Operating cash outflows for the quarter of $10.2m was mostly comprised of product manufacturing and operating costs ($6.8m), staff costs ($2.5m), and administration and corporate costs ($0.6m).
  • During the quarter the Company made payments of approximately $380,000 to Directors and their associates. This includes all Executive Directors and Non-executive fees, salaries, cash bonuses, and consultancy and service fees paid to related or associated parties of Directors including in respect of subsidiary operations whereby directors are related parties.

Commentary on Appendix 4C Cash Flow Report
Net operating cashflows in the quarter were positive $3.7m a small decrease of $0.3m on the previous quarter, but a $2.8m improvement on the same time last year. This was due to a decrease in cash collections from customers compared the prior quarter, down $1.5m, but up $4.5m on the same time last year, and lower payments for operating costs, which were circa $1.1m lower than the prior quarter, and $1.7m higher than the same time last year driven by higher payments for product manufacturing and operating costs which increased $1.7m as a result of increased sales.  The Group also continued development of the Aura Ai and Aura IQ platforms, continuing its R&D spending and intellectual property spending during the quarter, but at a reduced level compared to the previous quarter.  

Cash receipts from customers in Q1 included $1.3m from the Indian MoD project.  The next payment from this project is expected during November, being an amount of USD$1.9m (A$2.6m), in line with the 120 days project payment terms.

At 30 September 2020 the Company had $11.6m cash at bank.

ENDS.

Approved for release by the Board of Directors.

For further information, please contact:

Rob Broomfield, CEO & Executive DirectorLeigh Davis, CFO & Company Secretary
Ava Risk Group LtdAva Risk Group Ltd
rob.broomfield@theavagroup.comleigh.davis@theavagroup.com
+61 3 9590 3100+61 3 9590 3103
  

About Ava Group
The Ava Group, comprising world leading technology divisions Future Fibre Technologies (FFT) and BQT Solutions (BQT), and international secure logistics services division Ava Global,  is a market leader in the provision of risk management services and technologies, trusted by some of the most security conscious commercial, industrial, military and government clients in the world.

The Group features a range of complementary solutions including intrusion detection for perimeters, pipelines and data networks, biometric and card access control as well as the secure international logistics and storage of high value assets. Through decades of innovation, the Ava Group continues to build upon a comprehensive portfolio of premium services and technologies for the most complex and demanding markets.

Our business truly serves a global market, with our knowledgeable team spread across six continents, providing market and industry expertise directly to customers. With thousands of sites protected, the Ava Group is proven to deliver first class services and technologies that surpass the expectations of our partners and end users.

Forward Looking Statements
Information in this release is for general information purposes only. Certain statements in this document regarding the Company’s financial position, business strategy and objectives, contain forward-looking statements (rather than being based on historical or current facts) and as such, are not able to be verified.

All forward-looking statements are based on the current views of the Company’s management as well as reasonable assumptions made by, and information currently available to the Company’s management. Forward-looking statements are inherently uncertain and must be read accordingly. There can be no assurance that some or all of the underlying assumptions will prove to be valid. If assumptions are invalid this is likely to have an impact on the accuracy of the statement itself.

All data presented in this document reflects the current views of the Company with respect to future events. Forward-looking statements are subject to a variety of risks, uncertainties and assumptions relating to the operations, results of operations, growth strategy and liquidity of the Company. Forward looking statements are also subject to external matters outside the control of the Company.

To the maximum extent permitted by law, the Company, its officers, employees and agents do not assume any obligation to release any updates or revisions to the information (including any forward looking statements) in this presentation to reflect any change to expectations or assumptions; and disclaim all responsibility and liability for any loss arising from reliance on this presentation or its content.

Ava Group Records Record $17.0m Revenue & $7.7m EBITDA for First Quarter FY2021 (unaudited)

Ava Risk Group Limited (ASX: AVA) (Ava Group or Company) is pleased to confirm continued strong growth in the first quarter of FY2021:

  • Sales Revenues increased by 73% compared to the same period last year to $17.0 million
  • EBITDA improved by 522% compared to the same period last year to $7.7 million
  • Cash as at 30 September 2020 increased by 50% from 30 June 2020 balances to $11.6 million

Services Division – Q1 FY2021 Snapshot

• Revenue of $8.1 million
• EBITDA $1.6m
• Whilst there has been some normalisation of pricing due to the lifting of certain COVID-19 air freight restrictions, the underlying revenue trend remains very strong
• Industry consolidation continues to provide customer additional revenue opportunities
• Due to increasing economies of scale, Gross Margin improved to 33% on a YTD basis (vs. 25% for the whole of FY2020)
• New General Manager Asia, based in Singapore, appointed with further key appointments to be announced in Q2
• Management incentive scheme extended to the end of FY2021 (previously expired February 2021)

Technology Division – Q1 FY2021 Snapshot

  • Revenue of $8.9 million
  • EBITDA $6.1 million
  • Despite Covid-19 restrictions continuing to delay certain orders due to travel restrictions and office shutdowns, our Technology Division has continued to operate and deliver systems to both current and new customers including deliveries for major defence programs
  • Indian Ministry of Defence revenue for the large-scale data network protection program (FFT’s SecureLink product) was $3.6 million for the quarter with $1.3 million cash received for payment of good delivered in prior periods
  • Strong commercial interest in our new conveyor health monitoring solution (Aura IQ) with multiple Proof of Value trials completed and/or underway
  • Increasing activity with our assurance sensing solutions for terrestrial and sub-sea power cables and roads infrastructure
  • First shipment of the latest version of our FOSS platform – with Machine Learning software which is the completion of the first step in our roadmap of innovative solutions that will be offered to our customers on a SaaS revenue model.

Ava Group CEO, Rob Broomfield said “Our strong Q1 FY2021 results have demonstrated that our streamlined and highly scalable cost structure, along with our diverse customer base and revenue streams, are able to show continued growth even in times as disruptive as the current COVID-19 period.”

For further information, please contact:

Rob Broomfield, Group CEOLeigh Davis, Group CFO & Company Secretary
rob.broomfield@theavagroup.comleigh.davis@theavagroup.com
+61 408 243 582+61 3 9590 3103
   

Please refer to Note 1 below.

Approved for release for and on behalf of the Board of Directors by:

Leigh Davis
Company Secretary

About Ava Group
The Ava Group, comprising world leading technology divisions Future Fibre Technologies (FFT) and BQT Solutions (BQT), and international secure logistics services division Ava Global, is a market leader in the provision of risk management services and technologies, trusted by some of the most security conscious commercial, industrial, military and government clients in the world.

The Group features a range of complementary solutions including intrusion detection for perimeters, pipelines and data networks, biometric and card access control as well as the secure international logistics and storage of high value assets. Through decades of innovation, the Ava Group continues to build upon a comprehensive portfolio of premium services and technologies for the most complex and demanding markets.

Our business truly serves a global market, with our knowledgeable team spread across six continents, providing market and industry expertise directly to customers. With thousands of sites protected, the Ava Group is proven to deliver first class services and technologies that surpass the expectations of our partners and end users.

Note 1

Forward Looking Statements

Information in this release is for general information purposes only. Certain statements in this document regarding the Company’s financial position, business strategy and objectives, contain forward-looking statements (rather than being based on historical or current facts) and as such, are not able to be verified. 

All forward-looking statements are based on the current views of the Company’s management as well as reasonable assumptions made by, and information currently available to the Company’s management. Forward-looking statements are inherently uncertain and must be read accordingly. There can be no assurance that some or all of the underlying assumptions will prove to be valid. If assumptions are invalid this is likely to have an impact on the accuracy of the statement itself.

All data presented in this document reflects the current views of the Company with respect to future events.  Forward-looking statements are subject to a variety of risks, uncertainties and assumptions relating to the operations, results of operations, growth strategy and liquidity of the Company. Forward looking statements are also subject to external matters outside the control of the Company.

To the maximum extent permitted by law, the Company, its officers, employees and agents do not assume any obligation to release any updates or revisions to the information (including any forward looking statements) in this presentation to reflect any change to expectations or assumptions; and disclaim all responsibility and liability for any loss arising from reliance on this presentation or its content.

Service Division achieves more than $3m revenue for July 2020 with positive outlook for further growth in FY2021

Ava Risk Group Limited (ASX: AVA) (Ava Group or Company) is pleased to announce that its Services Division, Ava Global, has continued its growth trajectory from Q4 FY2020 into Q1 FY2021.

Following the new client wins announced in Q4 FY2020, a further five clients, across various sectors, have entered into agreements with Ava Global:

  • Mining                                      2
  • Precious Metals Refining        2
  • Banking                                   1

Unaudited revenue for the month of July 2020 was more than $3m with further Gross Margin improvement and EBITDA in excess of 15% (+6% vs FY2020 full year EBITDA of circa 9%),

Ava Global CEO, Chris Fergus, commented “We are delighted with the trajectory of the business and its financial performance since its inception in 2016. FY2020 was in many ways a transformational year with particularly strong Q4 FY2020 growth in the Americas, Europe and Africa, despite the logistical challenges posed by the COVID-19 pandemic. Building on our growing market opportunity, we are further investing in our business development capability in key client sectors and in the Asian region to further leverage our strong and scalable operational capability, as well as our growing reputation.”

For the sake of clarity, please note the above refers only to the Services Division and excludes any activities and results of Ava Group’s Technology Division.

For further information, please contact:

Chris Fergus, CEO – Services DivisionLeigh Davis, Group CFO & Company Secretary
chris.fergus@theavagroup.comleigh.davis@theavagroup.com
+971 4 4210665+61 3 9590 3103
  

Please refer to Note 1 below.

Approved for release for and on behalf of the Board of Directors by:

Leigh Davis
Company Secretary

About Ava Group
The Ava Group, comprising world leading technology divisions Future Fibre Technologies (FFT) and BQT Solutions (BQT), and international secure logistics services division Ava Global,  is a market leader in the provision of risk management services and technologies, trusted by some of the most security conscious commercial, industrial, military and government clients in the world.

The Group features a range of complementary solutions including intrusion detection for perimeters, pipelines and data networks, biometric and card access control as well as the secure international logistics and storage of high value assets. Through decades of innovation, the Ava Group continues to build upon a comprehensive portfolio of premium services and technologies for the most complex and demanding markets.

Our business truly serves a global market, with our knowledgeable team spread across six continents, providing market and industry expertise directly to customers. With thousands of sites protected, the Ava Group is proven to deliver first class services and technologies that surpass the expectations of our partners and end users.

Note 1

Forward Looking Statements

Information in this release is for general information purposes only. Certain statements in this document regarding the Company’s financial position, business strategy and objectives, contain forward-looking statements (rather than being based on historical or current facts) and as such, are not able to be verified. 

All forward-looking statements are based on the current views of the Company’s management as well as reasonable assumptions made by, and information currently available to the Company’s management. Forward-looking statements are inherently uncertain and must be read accordingly. There can be no assurance that some or all of the underlying assumptions will prove to be valid. If assumptions are invalid this is likely to have an impact on the accuracy of the statement itself.

All data presented in this document reflects the current views of the Company with respect to future events.  Forward-looking statements are subject to a variety of risks, uncertainties and assumptions relating to the operations, results of operations, growth strategy and liquidity of the Company. Forward looking statements are also subject to external matters outside the control of the Company.

To the maximum extent permitted by law, the Company, its officers, employees and agents do not assume any obligation to release any updates or revisions to the information (including any forward looking statements) in this presentation to reflect any change to expectations or assumptions; and disclaim all responsibility and liability for any loss arising from reliance on this presentation or its content.